BJP states need not follow Centre's FDI norms: Gadkari

In a major move opposing foreign direct investment (FDI) in the retail sector, the Bharatiya Janata Party (BJP) leadership has said governments of BJP-ruled states were not bound to follow the Centre’s latest norms on multi-brand and single-brand retail.

Supporting the nationwide call for bandh given by trader associations and social organisations to protest against the decision, the party would urge all opposition parties and allies of the ruling United Progressive Alliance (UPA) to come out in support.

“The BJP-ruled states are not bound to follow the government norms on allowing FDI in multi-brand retail trading and easing those in single-brand retail. With the entry of global retailers into the supermarket sector, India would lose both manufacturing and services sector jobs. We would oppose the government’s decision tooth and nail and would urge other opposition parties and UPA allies to join the bandh organized by various trader organizations,” BJP President Nitin Gadkari said.

Confederation of Traders Association, Udyog Vyapar Mandal, Swadeshi Jagran Manch and Bharatiya Mazdoor Sangh have called a nationwide bandh on December 1 to protest the government’s move to allow FDI in multi-brand and single brand retail.

“The BJP will stand by the large section of small retailers and farmers across the country and shall oppose the government’s effort, both inside and outside Parliament. We strongly feel the government’s lopsided move without consulting even its own allies was against the interests of millions of traders and farmers,” Gadkari added.

The party president argued the Indian economy was dominated by the services sector, which accounted for 58 per cent of GDP. Gadkari said self-employment was the single largest source of jobs in the country and allowing multinational companies with deep pockets would have an adverse impact on the domestic retail sector.